Curated Experiences in Experiential Marketing: The Heineken "City Ride" Case

THE HEINEKEN “CIT Y RIDE” CASE Student: Ioannis X. Sourlantzis Supervisor: Associate Professor Dr. Flora Kokkinaki M.Sc. Director: Professor George Baltas

EXPERIENCE ECONOMY

A New Worldwide Environment

B. Joseph Pine ll and J.H. Gilmore, HBR (1998)

1.

Omnipresence of information technology

2.

Supremacy of the “Brand”

3.

Ubiquity of Communications and Entertainment

EXPERIENTIAL MARKETING Principles of Experiential Marketing “Traditional marketing views consumers as rational decision-makers who care about functional features and benefits. In the contrast, experiential marketers view consumers as rational and emotional human beings who are concerned with achieving pleasurable experiences.” (Schmitt, 1999, p.55) “Benefits are not in products. Benefits are in the consumer experience.” (Chris Janiszewski, 2009) Introduction for the first time of the concept of “engineering” experiences, by Lewis P. Carbone and Stephan H. Haeckel, in 1994.

“Engineering an experience begins with the deliberate setting of a targeted customer perception and results in the successful registration of that perception in the customer’s mind. Systematically designing and orchestrating the signals generated by products, services, and the environment is the means to that end.” (Carbone and Haeckel, 1994, p. 2)

TRADITIONAL VS EXPERIENTIAL MARKETING TRADITIONAL MARKETING a. Features and Benefits b. Narrow definition of Product Category and Competition c. Customers are rational decision makers d. Methods are analytical, quantitative and verbal

EXPERIENTIAL MARKETING a. Customer Experience b. Consumption is a Holistic Experience c. Customers are rational and emotional beings d. Methods are eclectic

CUSTOMER EXPERIENCE MANAGEMENT (CEM) Strategic Experiential Modules (SEM): Modules that managers can use to create different types of experiences.

1. Sense: The five senses, Sight, Sound, Touch, Taste and Smell.

2. Feel: Customer Emotions, joy, thrill, sadness, pride etc.

3. Think: The Rational nature of the customer, intellect, cognitive reactions, problem-solving etc.

4. Act: Customer’s engagement to re-act, take actions, change habits in order to find added value.

5. Relate: Reboot Customer’s Self-Esteem through new relations with the brand, the product or the brand community.

CUSTOMER EXPERIENCE MANAGEMENT (CEM) Experience Providers (ExPros): The implementation tools of Experiential Marketing.

1.

2.

3.

4.

Communication: Advertising, Public Relations etc.

Visual and Verbal Identity: Clarification of sign, logo and trademarks.

Product Presence: The merchandising of the product, the efficient and attentive Co-Branding: Strategic Alliances, partnerships, joint marketing campaigns, events, relational promotions.

5. Spatial Environments: The actual retail or theme shop, trade fairs, and every correlated serviscape of the brand.

6. Electronic Media: Websites, digital, campaigns and digital marketing.

7. People: Salesforce, public relations people, technical support and in general user experience facilitators in every touch point. (Schmitt, 1999)

THE EXPERIENTIAL GRID

Bernd Schmitt, (1999)

LITERATURE REVIEW Customer Experience

Discovery Experience (Identification of products, advertising and promotion)

How to segment the experience concept in stages that can be controlled by the brand?

1.Consumer decision model in marketing(Howard and Sheth, 1969) 2.Experience Engagement Model (Lasalle and Britton 2002)

Purchase Experience

Consumption Experience

Post-Consumption Experience

(Immediate + (In physical or + (Company’s + results after the control on this digital environment)

stage may vary critically)

consumption, first judgment and memory creation)

1.Brand Touch-Point Wheel (Davis and Longoria(2003) 2. Consumer Experience Benchmarking (Carlos Molina, 2015)

Extension Experience

+ (Post use

continuation of relationship)

LITERATURE REVIEW Experiential Marketing

4E’s 1. Entertainment 2. Escapism 3. Exhibitionism 4. Evangelizing

What is it?

Customer Experience

CEM § SEMs § ExPros § ExGrid

(Holbrook, 2000)

+

(Schmitt, 1999)

3F’s 1.Fun 2.Feelings 3.Fantasies

(Morris B. Holbrook and Elizabeth C. Hirschman, 1982)

TCE

TRANSCENDENT CUSTOMER EXPERIENCE “TCEs are marked by emotional intensity, epiphany, singularity, and newness of experience, extreme enjoyment, oneness, ineffability, extreme focus of attention, and the testing of personal limits.� (Schouten et al., 2007, p. 358)

*Curated Experiences: designed, engineered and orchestrated immersive and memorable customer experiences, that affect both the rational and emotional nature of human beings, and generate lasting shifts in beliefs and attitudes.

INTERNATIONAL CASES Target Audience

Theme of Curated Experience

Adidas “D Rose Jump Store”

TNT Belgium “Push to Add Drama”

Year: 2013 Participants: 50 Youtube views: 731.836

Year: 2012 Participants: 500+ Youtube views: 51.877.344

Execution

Digital Documentation

The North Face “Never Stop Exploring” Year: 2014 Participants: 500+ Youtube views: 11.331.082

Upload on Social Media

Coca-Cola - Skyfall: Unlock the 007 in You Year: 2012 Participants: 500+ Youtube views: 11.049.960

HEINEKEN “CITY RIDE” Co-branding: Heineken, Taxibeat, Athens Daily Secret Destinations: 50 different Venues Participants: 400 people

RESEARCH OBJECTIVES *Examination of the effects curated experiences have as a marketing tool, on consumer behavior and consumer attitude towards the brand.

Experience Measurement: 1.

2.

3.

4.

5.

Strategic Experiential Modules (SEM) Key Experience Factors: § Entertainment § Escapism § Unusualness Consistency with the brand Perceived personalization Net Promoter Score(NPS): § Physical § On Social Media

About the Brand: § Attitude towards the brand § Purchase Intention § Social Media Engagement

METHODOLOGY Sampling Method: Non-Probability Sampling (Convenience Sampling) Research Tool: Online Survey Questionnaire: Closed-type questions Questions: 7-Point Likert Scale Data Analysis: SPSS 20

Participants: 54 Venues: 12

Sample Profile

DATA FINDINGS

Venues

No more than 1 can of beer or glass 1-2 cans of beer or glasses 2-4 cans of beer or glasses 4-6 cans of beer or glasses More than 6 cans of beer or glasses

DATA FINDINGS Friend/Acquaintance Social Networks(Facebook, Twitter, etc.)

Blogs Radio Taxibeat App Other Websites Other Source

4%6% 8%

Yearly

Monthly

Weekly

Daily

Never

10%

4% 2% 15%

0% 4%

13%

31%

40%

8% 66%

46%

15% 28.08%

How did they learn about the experience?

Frequency of Consumption

Quantity of Consumption

DATA FINDINGS § § §

Participants agree that the experience was very entertaining. (Entertainment) Participants agree that the experience was original. (Unusualness) Participants agree that the experience was escaping. (Escapism)

§

Participants agree that it fits with the brand identity of Heineken. (Brand Consistency)

§

Participants slightly disagree that the experience had offered product information.

DATA FINDINGS Direct improvement [ after the experience Net Promoter Score -

Sharing on Social Media [ (Digital NPS)

Exposure on Youtube Digital Engagement [

Delighted by [ Curated Experiences

DATA GROUPING *Because of the small size of the sample it is necessary to group different venues with the same experiential attributes in order to create more valid statistical groups.

Following Schmitt’s categorization (2009), we can group the experiences in 4 types:  Sensory Experiences/Affective Experiences Behavioral Experiences Intellectual Experiences

DATA GROUPING Attitude towards the Brand § By Type of Experience

There are not statistically significant differences (sig=0.172, statistically significant at level 0.05).

§ By Age

“36-55 years old” are more likely to improve attitude towards the brand (F=4.621, p=0.014).

Purchase Intention

§ By Type of Experience

There are not statistically significant differences (p=0.139, statistically significant at level 0.05).

§ By Age

There are not statistically significant differences (p=0.425, statistically significant at level 0.05).

Conclusions 1. All types of experiences can be selected for future marketing activity with positive outcome.

2. The age range “36-55 years old” has a more positive attitude towards the brand after positive experience.

CORRELATIONS Attitude towards the Brand (p=0.024) Entertainment

0.477

Sharing on Social Media (p<0.001) Recommendation to a friend or acquaintance (p=0.007)

CORRELATIONS Attitude towards the Brand (p>0.05, sig. at 0.05)

Escapism

0.392

Sharing on Social Media (p=0.003) Recommendation to a friend or acquaintance (p<0.001)

CORRELATIONS Official Page on Social Media • People who want to live again the experience, want to follow the official page of the brand on social media, (r=0.336, n=54) and it is statistically significant (p=0.013).

• People who found that the experience fits with their style, want to follow the official page of the brand on social media, (r=0.433, n=54), and it is statistically significant (p=0.001).

Experience’s Consistency with Brand • People who found that the experience is relevant to Heineken’s brand identity, will buy more often Heineken products, (r=0.538, n=54) and it is statistically significant (p<0.001).

DISCUSSION MARKETING IMPLICATIONS 1. Entertainment and Escapism are fundamental elements for curated experiences. “Give them something to tweet about.”

2. The Escapism element must be limited.

3. Successful Curated Experience generate shifts in attitudes and behavior.

4. Less product information may not have any negative effects.

5. Facilitate sharing on Social Media (provide hush tag).

6. Cost Efficiency of this promotional tool due to user’s re-marketing.

DISCUSSION MANAGERIAL IMPLICATIONS 1. Integrate the curation of experiences in every brand touch-point with the consumer.

2. Apply Experience Measurements on each stage.

3. Establish Consumer Experience Benchmarking and use comparative customer experience data.

4. Repeat the concept of Curated Experience in advertising: § Increases Efficiency in Conversion § Reduces Costs

LIMITATIONS § Small size of the sample (n=54). § Data Collection Method: Convenience Sampling. § Voluntary Participation. § There was not a pre-event questionnaire. § There is no previous research in Greece, or extended literature (Hypotheses test is not applicable).

FUTURE RESEARCH § Conduction of both pre-experience and post-experience questionnaires. § Instant Data collection ad hoc. § Conduction of Experience Measurement on other touch-points. § Mapping and Identification of KPI’s for different experience touch-points. § Benchmarking the efficiency of Curated Experiences with other marketing activities.

THE END

THANK YOU

OVERVIEW THE EXPERIENCE ECONOMY EXPERIENTIAL MARKETING TRADITIONAL VS EXPERIENTIAL MARKETING • CUSTOMER EXPERIENCE MANAGEMENT (CEM) • EXPERIENCE PROVIDERS (Expros) • EXPERIENTIAL GRID LITERATURE REVIEW CURATED EXPERIENCES: INTERNATIONAL CASES HEINEKEN “CITY RIDE” METHOD DATA FINDINGS DATA GROUPING CORRELATIONS DISCUSSION – IMPLICATION LIMITATIONS – FUTURE RESEARCH

THE REALMS OF EXPERIENCE Absorption vs Immersion and Passive vs Active Participation 1.

2.

3.

4.

B. Joseph Pine ll and J.H. Gilmore, HBR (1998)

Entertainment Educational Escapist Esthetic

HEINEKEN CURATED EXPERIENCES Target Audience

Theme of Curated Experience

Champions League Real vs Classical Concert (Real Madrid - AC Milan) Year: 2009 Participants: 1200 Youtube views: 303.388

Execution

Digital Documentation

Upload on Social Media

“3 minutes to the final”

“Open your City”

Year: 2014 Participants: 500+ Youtube views: 1.133.027

Year: 2014 Participants: Youtube views: -

CORRELATIONS Entertainment

• People who found the experience entertaining have a more positive attitude towards the brand, after the experience, (r=0.306, n=54) and it is statistically significant (p=0.024).

• People who found the experience entertaining want to share the experience on social media, (r=0.477, n=54) and it is statistically significant (p<0.001).

• People who found the experience entertaining want to recommend the experience to a friend or acquaintance, (r=0.366, n=54) and it is statistically significant (p=0.007).

Escapism • There is no statistically significant correlation between escapism and attitude towards the brand, (p>0.05, it is significant at the 0.05 level).

• People who felt that the experience was an escape from everyday life, want to share the experience on social media, (r=0.392, n=54) and it is statistically significant (p=0.003).

• People who felt that the experience was an escape from everyday life, want to recommend the experience to a friend or acquaintance, (r=0.508, n=54) and it is statistically significant (p<0.001).

QUESTIONNAIRE (1)

QUESTIONNAIRE (2)

SEM, Schmitt Scale (2009)

QUESTIONNAIRE (3)

1.The 4E’s